Service Profit Chain
The Service-Profit Chain is a business theory developed by Harvard University researchers. It aims to help organizations manage and measure success by emphasizing the critical roles of employees and customers within the organizational workflow.
The Service-Profit Chain links an organization’s profit to key drivers like customer satisfaction, retention, loyalty, and productivity.
Workflow behind Service-Profit Chain
The Service-Profit Chain starts with employee engagement, which drives quality service, leading to customer satisfaction, loyalty, and ultimately, profit and growth.
Employee Engagement – Service-Profit Chain
When we analyze to the root, the intrinsic force that is driven from Customers Satisfaction to Productivity is because of Employees Engagement.
Employee and customer satisfaction are closely linked. Engaged employees better understand customer needs, leading to higher satisfaction, loyalty, and ultimately increased sales and ROI.
Customer Loyalty triggers Profit & Growth
Loyal Customers are familiar with the operations of your firm, as you are a trusted provider for them. Because of their trust, there will be an uninterrupted relationship with you and customers, which will lead to a stable flow of revenue. Also, they are the referrals, who emits the testimonial aroma of your products, which increases your growth. From Loyal Clients, you can have,
- High Retention Rate
- Greater Revenue per Client
- Lower Servicing Costs
- Increased Referrals
Customer Satisfaction triggers Customer Loyalty
Only highly satisfied customers become loyal. They return often, try new products, buy exclusively from you, and refer others—making them key to repeat business and growth.
Customer Service + Employee Retention triggers Customer Satisfaction
Customer Service is a key cornerstone for Customer Satisfaction. Resolving the customers’ doubts and complaints will provide them a good customer service that will make them to fix firmly into your business. Fulfilling Customers needs make them satisfied.
To acquire a strong customer service, you need well-experienced employees. The employees who are in your company for a long time will only know the nook and corner of your business so that they can easily assist your customers.
Employee Engagement Triggers All
Employee engagement and satisfaction are related but different—engagement reflects motivation, while satisfaction shows overall contentment. Engaged employees stay longer and deliver better customer service.
Employees should be motivated to do their work (you can use Output Messenger to motivate your employees and teamwork), and recognized for their works that will make them as satisfied and lead them to commit to your company.
Strong employee engagement and great customer service can boost earnings per share and significantly increase productivity.
Leadership triggers Employee Engagement
Always a work flow starts with an efficient Leadership that will bind all of the Employees together. Only Service-Profit leader can explain, develop and maintain a climate focused on employees and customers. He / she is an engaged leader and responsible for creating engagement within the employees. They only care about and spent time for employee’s time, test their delivery process, encourage employee’s suggestions and innovations, care and concern for them, recognize them and guide them.
Implementing Employee engagement – Service-profit chain in your normal business activity will help you to have high Profit and Growth with a flexible workplace.
The mortar for all these activities and basic workflow is Open Communication. To have such a open communication environment, you can prefer the Private Lan Messenger software Output Messenger. Because only with Private Messenger, all your company information will be Secured and Confidential.